appraising performance
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Appraising PerformanceTRANSCRIPT
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Human Resource
Management
Appraising Performance
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Behavioral Objectives
Explain why it is important to effectively appraise performance.
Describe eight performance appraisal methods and the pros and cons of each.
Discuss the major problems inhibiting effective performance appraisals.
Conduct a more effective appraisal interview.
When you finish studying this chapter, you should be able to:
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Performance Appraisal
Performance appraisal is the evaluation ofan employee’s current or past performancerelative to his or her performance standards.
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The Performance Appraisal Process
The appraisal process involves:
Setting Work Standards
Assessing the Employee’s Actual Performance Relative to These Standards
Providing Feedback to the Employee with theAim of Motivating That Person to EliminatePerformance Deficiencies or to Continue to
Perform above Par
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Appraisal Methods
Graphic Rating Scale MethodAlteration Ranking MethodPaired Comparison MethodForced Distribution MethodCritical Incident MethodNarrative FormsBehaviorally Anchored Rating ScalesThe Management by Objectives
(MBO) Method4
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Rating Scale Appraisal Problems
These five main problems can undermine appraisal tools:
Unclear Standards
Halo Effect
Central Tendency
Leniency or Strictness
Bias
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How to Avoid Appraisal Problems
There are at least four ways to minimize the impact of appraisal problems:
Be sure to understand the problems as just discussed and the suggestions given for
each of them.
Choose the right appraisal tool.
Train supervisors to eliminate rating errors such as halo, leniency, and central tendency.
Keep a diary.6
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Guidelines for Developing a Legally Defensible Appraisal Process
1. Conduct a job analysis to ascertain the criteria and standards (such as “timely project completion”) required for successful job performance.
2. Incorporate these criteria and standards into a rating instrument.
3. Use clearly defined individual dimensions of job performance (like “quantity” or “quality”) rather than undefined, global measures of job performance (like “overall performance”).
4. Communicate performance standards to employees and to those rating them, in writing.
5. When using graphic rating scales, avoid abstract trait names (for example, “loyalty”, “honesty”) unless they can be defined in terms of observable behaviors.
6. Employ subjective supervisory ratings (essays, for instance) as only one component of the overall appraisal process.
7. Train supervisors to use the rating instrument properly.
8. Allow appraiser substantial daily contact with the employee being evaluated.
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Guidelines for Developing a Legally Defensible Appraisal Process (Cont.)
9. Base appraisals on separate evaluations of each of the job’s performance dimensions.
10. Whenever possible, have more than one appraiser conduct the appraisal and conduct all such appraisals independently.
11. One appraiser should never have absolute authority to determine a personnel action.
12. Include an employee appeal process.
13. Document all information and reasons bearing on any personnel decision.
14. Where appropriate, provide corrective guidance to assist poor performers in improving their performance.
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Who Should Do the Appraising?
Options for who should actually rate an employee’s performance include:
The immediate supervisor
Peers
Rating committees
Self-ratings
Subordinates
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Three Types of Appraisal Interviews and Their Objectives
Appraisal Interview Type
(1) Performance is satisfactory— Employee is promotable
(2) Satisfactory—Not promotable
(3) Unsatisfactory—Correctable
Appraisal Interview Objective
(1) Make development plans
(2) Maintain performance
(3) Plan correction
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Conducting the Appraisal Interview
Four things to keep in mind in conducting a successful Appraisal Interview:
1. Be direct and specific. Use examples such as absences, tardiness, quality records, inspection reports, scrap or waste, orders processed, productivity records, material used or consumed, timeliness or tasks or projects, control or reduction of costs, numbers of errors, costs compared to budgets, customers’ comments, product returns, order processing time, inventory level and accuracy, accident reports, and so on.
2. Don’t get personal. Don’t say, “You’re too slow in producing those reports.” Insteadtry to compare the person’s performance to a standard (“These reports should normally bedone within 10 days”). Similarly, don’t compare the person’s performance to that of otherpeople (“He’s quicker than you are”).
3. Encourage the person to talk. Stop and listen to what the person is saying; askopen-ended questions such as “What do you think we can do to improve the situation?” Usea command such as “Goon,” or “Tell me more.” Restate the person’s last point as a question,such as “You don’t think you can get the job done?”
4. Don’t tiptoe around. Don’t get personal, but do make sure the person leaves knowingspecifically what he or she is doing right and doing wrong. Give specific examples; make surethe person understands; and get agreement before he or she leaves as to how things will beimproved, and by when. Develop an action plan showing steps and expected results.
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How to Handle a Defensive Subordinate
Recognize that defensive behavior is normal.
Never attack a person’s defenses.
Postpone action.
Recognize your own limitations.
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